Ultimately, the best use of a tax refund is to re-invest it. ~ Tom Wheelwright, CPA and CEO of ProVision Wealth
Tempe, Arizona (PRWEB) April 21, 2015
Tax-Free Wealth Author Tom Wheelwright urged Americans to use their 2015 tax refunds to build wealth on AZTV The Morning Scramble last Friday, April 17, 2015. The mission of Tom’s company ProVision Wealth is to permanently reduce taxes by 10-40% for successful small businesses, entrepreneurs and investors – and then build long-term wealth using the additional cash.
During this AZTV interview, Tom emphasized, “Ultimately, the best use of a refund is to reinvest it.” Tom also writes in his book, “And refunds from the government just feel better than money earned any other way.” By knowing how the tax law works, refunds are much more likely with help from a good tax advisor.
Donald Trump selected Tom to contribute to his Wealth Builders Program, calling Tom “the best of the best.” And as a long-term strategy, Tom recommends turning refunds into serious wealth.
People receiving a refund may be tempted to use the extra cash to take an immediate vacation, do a few minor home improvements, and/or donate to a charity. If the money is added to a long-term strategy, the results can be multiplied to include all three; a dream vacation, remodeled home and continuous support for a favorite charity.
Once a refund is received, Wheelwright explains the best way to gain long-term wealth is through 3 strategies: Compound Interest, Leverage, and Velocity (Tom’s book, “Tax-Free Wealth” book includes examples). While these steps may sound complicated, they are really quite simple. The basic success keys include:
1. Start by getting a financial education from people who have successful track records.
2. Start slowly and get practice going around the investment track.
3. After a few runs, pick up speed on your investments and results.
1. Compound Interest provides significantly greater returns than regular investments. For example, with a $10,000 CD investment over 10 years with a 5% compounded interest rate, the investor would make $6,288 versus a $5,000 gain if the money was taken out each year. The $1,288 difference is the compounded interest and extra money to grow a portfolio.
2. Leverage happens when an investor earns interest on someone else’s money. This process is what the bank does with every customer deposit. To leverage money, an investor can take a bank loan for 5%, and then get a 9% return on another investment. The result is a 4% gain on borrowed money. It’s like getting free money. Combined with investing a tax refund, leverage multiplies the investor’s returns.
3. Velocity is how fast an investor can go, and is like a race car. The faster an investor gains financial education and experience, the sooner a financial dream can be realized. The more a person leverages money, the faster wealth is built. To gain knowledge, Tom recommends playing the Rich Dad CASHFLOW 101 Game.
In the end, investors can build massive passive income with a great tax advisor and an investment portfolio that all started with a tax refund.
Tom Wheelwright, CPA and CEO of ProVision Wealth (Tempe, Arizona), is a leading tax and wealth expert, speaker, published author of Tax-Free Wealth. He is also a Rich Dad Advisor/Speaker for Robert Kiyosaki, who wrote Rich Dad Poor Dad. Tom is best known for making taxes “fun, easy and understandable”, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. He is also the Founder of WealthStrategyU, and has been featured in Investor’s Business Daily, Accounting Today, Deseret News National, Huffington Post, Phoenix Business Journal, CEO Blog Nation, and as a guest on the AZTV The Morning Scramble, ABC Radio News, AM870 The Answer, Real Estate Guys Radio Show and Money Radio 1510 Business for Breakfast. http://taxfreewealthadvisor.com